Alternative-Lending Company Kabbage Valued at $1 Billion in New Funding

Private investors are continuing to plow hundreds of millions of dollars into alternative-lending startups at valuations of more than $1 billion, despite the public shares of competitors in the same sector trading below IPO prices.

Kabbage Inc. is the latest to secure backing, raising $135 million at what a source familiar with the deal told The Wall Street Journal was a valuation of more than $1 billion.